Business News Round Up (07/12/2023)
Scottish business profit expectations plummet as low optimism reflects bleak economic outlook
The December round of Grant Thornton’s Business Outlook Tracker*, which monitors mid-market business sentiment, shows that profit expectations have plummeted since October, with 1 in 3 (32%) expecting a decrease in profit in the next six months. Business optimism also continued a downward trend across all indicators, whilst investment expectations also fell across all categories. Key findings include – Profit expectations have plummeted -20 percentage points (pp) since October to 46% – this is 9pp below the rolling average; 1 in 3 (32% expect a decrease in profits); Optimism about economic growth stayed flat since October at 58% – this is 11pp below the rolling average (69%) and just +1pp higher than the lowest recorded level; Revenue growth expectations fell -12pp below the rolling average to 58%; 18% of respondents were pessimistic about revenue growth.
UK rejoins EU’s £80bn Horizon research programme
The UK has signed an agreement to rejoin the European Union’s £80 billion Horizon research and development programme. It has also agreed to rejoin Copernicus, the Earth observation component of the EU’s space programme. The government says the deal is set to create and support thousands of new jobs as part of the next generation of research talent. Negotiated over the last six months, it has been heralded as a landmark moment for scientists, researchers, and businesses. The UK joins EU countries as well as Norway, Israel, and others, with Canada set to join soon. Researchers, academics, and businesses of all sizes can now bid for a share of the more than £80bn available through the two programmes, with calls for the 2024 Work Programme already open.
Scottish pubs ‘closing at twice the rate of that in England’
Ministers are being urged to offer business rates support to pubs after new research revealed that Scottish boozers are closing at twice the rate of those in England this year. Researchers found that 1.7% of all Scottish outlets shut in the first nine months of this year, compared with 0.8% in England and 1.4% in Wales. Holyrood ministers decided not to match a 75% business rates relief available for the sector in England and Wales in the 2022-23 Scottish budget. In last month’s autumn statement, Jeremy Hunt, the chancellor, pledged to extend the scheme, which also covers retail and leisure, for a further 12 months. Shona Robison, the Scottish deputy first minister, is now under pressure to follow suit when she unveils the Holyrood budget on December 19. The Scottish Beer & Pub Association (SBPA) and the Scottish Licensed Trade Association (SLTA) issued a joint statement today seeking support.
UK businesses turn to technology to out-flank fraudsters
UK businesses are among the most concerned with fraud in Europe. However, they are also the most confident that their defences remain one step ahead of fraudsters. Financial services risk management software provider Lenvi Riskfactor has surveyed 207 senior decision makers with influence and involvement in credit facility services, working for businesses in France, Germany, Spain, and the UK. The study reveals a detailed picture of how fraud has affected receivables finance lenders in recent years, how it might affect them in the future, and how strategies to prevent fraud are being developed in four key European markets: the UK, France, Spain, and Germany. The headline result finds that 89% of respondents across the four markets noted an increase in fraudulent activity against their businesses in the last year. At the same time, 81% expecting a continued increase through the current financial year.
https://www.consultancy.uk/news/36059/uk-businesses-turn-to-technology-to-out-flank-fraudsters